Additional Powers to Philippine Coconut Authority

The Decree recognizes that the economic well-being of a major sector of the population depends on the viability of the coconut industry.
The Decree declares State policy to promote rapid integrated development and growth of the coconut and other palm oils industry in all aspects.
The Decree states the policy goal of ensuring coconut farmers become direct participants in, and beneficiaries of, growth and development.
The Decree frames a State program to rationalize the coconut oil milling industry to assure:
- a fair price for coconut farmers’ copra, and
- adequate and continuous supply to consuming countries of copra, coconut oil and their by-products at fair and competitive prices.
The Decree finds that further promotion of rationalization requires granting the Philippine Coconut Authority additional powers on marketing and export.

Section 1 grants the Philippine Coconut Authority full power and authority to regulate the marketing and export of:
- copra,
- coconut oil, and
- their by-products.
The regulation power is exercised “in furtherance of” steps to rationalize the coconut oil milling industry.
The subject matter authority covers both marketing and export activities involving the listed coconut products and by-products.
The Decree ties implementation to the broader objective of industry rationalization and fair market outcomes for farmers and consumers.

Section 2 authorizes the Philippine Coconut Authority to initiate and implement measures necessary to attain the rationalization of the coconut oil milling industry.
Section 2 expressly authorizes these example measures (including but not limited to):
- imposition of floor and/or ceiling prices for all exports of copra, coconut oil, and their by-products;
- prescription of quality standards;
- establishment of maximum quantities for particular periods and particular markets; and
- inspection and survey of export shipments through an independent international superintendent or surveyor.
Section 2 requires the Philippine Coconut Authority to consult with, and be guided by the recommendation of coconut farmers through:
- corporations owned or controlled by them through the Coconut Industry Investment Fund, and
- the private corporation authorized to be organized under Letter of Instructions No. 926.
The consultation-and-guidance requirement applies in the exercise of powers under Section 1 and Section 2.

Section 3 provides that exports of copra and its by-products to:
- socialist countries, and
- other countries that heretofore have not purchased copra and its by-products from the Philippines on a regular basis
  shall be undertaken by or coursed through the private corporation authorized to be organized under Letter of Instructions No. 926.
Section 3 establishes an export channeling requirement for the specified destinations and market history.

Section 4 empowers the Philippine Coconut Authority to promulgate rules and regulations necessary to fully and effectively implement the Decree.
Rulemaking authority covers implementation of the Decree’s regulatory powers over:
- marketing and export regulation,
- pricing and quality controls,
- quantity limitations by period and market,
- shipment inspection/survey arrangements.

Section 5 imposes penalties for wilful and deliberate violations of:
- any provision of the Decree, or
- any rule or regulation legally promulgated under it by the Philippine Coconut Authority.
For individuals responsible for such violations, Section 5 provides:
- a fine of not more than P20,000.00, and
- imprisonment of not more than five (5) years.
For violations committed by a corporation, partnership, or juridical person, Section 5 provides that the penalty shall be imposed on the officer or officers authorizing, permitting, or tolerating the violation.
Section 5 provides for alien consequences:
- aliens found guilty shall, after having served his sentence, be immediately deported.
Section 5 provides for naturalized citizens:
- in the case of a naturalized citizen, his certificate of naturalization shall be cancelled.
The Decree contains duplicated Section 5 text that reiterates the same penalty scheme for wilful and deliberate violations, including fine, imprisonment, corporate officer liability, and deportation/cancellation consequences.

Section 6 repeals or amends laws, executive orders, administrative orders, and rules and regulations inconsistent with the Decree.
Section 7 provides a separability rule: if any provision is held unconstitutional, all other provisions remain valid.
Section 8 states the Decree takes effect immediately.
The Decree was issued October 04, 1979 and is signed in Manila on the 4th day of October of 1979.